Why startups fail – too big, too early and other founder failures

Dead flower
Dead flower

Eleven out of 12 startups are destined to fail – but why? The Startup Genome Project looked at 3,200 businesses to find out what distinguished the successful young startups from the not-so-successful.


Too-rapid growth and the wrong focus

The reasons why startups fail are multifaceted. The infographic from the Startup Genome Project should therefore not be considered a general rule. Yet aspects like growing too rapidly and too much focus on customer acquisition do seem to be trends that can rapidly lead to downfall.

From too many features to too few user tests and all the way to over-the-top outsourcing, these factors were found in the study to often lead to failure. A prime example of how a product that does not meet the desires of the users, despite being well-financed and generating a great deal of hype, will fail can be seen in the discontinuation of the much-lauded Wunderkit from 6Wunderkinder. What are your thoughts, does the Startup Genome Project hit the nail on the head with their study?


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